Uncheck Restock Checkbox in Item Receipt from Return Authorization Results to Unexpected Error

Scenario

When Restock checkbox is unmarked on Item Receipt from Return Authorization and user encounters an Unexpected Error:"Cost of Goods Sold Not in Balance", it is possible that user sets the account for Write-off Account for Returns the same with the account that is set as COGS Account.

• When an Item Receipt comes from a Return Authorization and the Restock Checkbox is marked, the GL Impact shows:
• Debit to Asset Account 
• Credit to COGS Account
  Since you restock the Item you also need to return its corresponding Asset Account to the accounting books.

• When an Item Receipt comes from a Return Authorization and the Restock Checkbox is unmarked, the GL Impact shows:
• Debit to an Expense Account that is set in the Write-off Account for Returns 
• Credit to COGS Account 
  
  Note: The error is possible if same Account is set in the Write-off Account for Returns and COGS Account because it would result to a debit and a credit to same Account.

Solution

1. Navigate to Setup > Accounting > Accounting Preferences > Order Management tab
   
   
2. On the Returns section
   
   
3. Change the Write-off Account for Returns to an Expense Account different to the account set as COGS Account
   
   
4. Click Save